Two investment funds are buying a residential neighborhood in Manhattan, with 56 buildings and 11,200 apartments, for $5.3 billion. The new owners of the block will become US investment firm Blackstone which will have a 51 percent stake, and Ivanhoe Cambridge from Quebec Ivanhoe Cambridge, a subsidiary of Canadian pension fund, who will own 49 per cent stake.
The municipal authorities have sought from these firms to maximize rent prices for 5,000 apartments in a residential area Stuyvesant Town until 2035, as well as 1,400 apartments in a block of Peter Cooper Village by 2025.
These private residential development ere built after World War II in 1947 and were primarily intended for participants in the war.
The municipality now wants these apartments are designed for renting to medium and lower class, nurses, teachers, firefighters and workers’ families.
The complex is in the southeastern part of Manhattan and includes 56 buildings with 11,200 apartments.
The value of this transaction is slightly less than the most important purchase of housing in the US in 2006, when Tishman Speyer Properties and BlackRock Realty, became the owners of this 80-acre property on the East River for $5.4 billion.